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Mandatory Climate-Related Financial Disclosures

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BEIS ran a consultation on mandatory reporting in line with existing TCFD recommendations between March 2021 and May 2021, with the outcome yet to be published. It is proposed that the legislation will apply to publicly quoted companies, large private companies, and LLPs. The proposals currently state that no company with less than 500 employees will be included in the scope.

It is proposed that disclosures cover climaterelated financial information in line with the four overarching pillars of the TCFD recommendations. These are: Governance, Strategy, Risk Management, Metrics & Targets.

The Government recognises the crossover of SECR and TCFD reporting and, as part of their consultation, they are seeking views on how best to simplify the interaction between the two. Subject to consultation and Parliamentary approval, the Statutory Instrument will be made in 2021, with rules coming into force on the Common Commencement Date of 6th April 2022. Accounting periods starting on or after 6 April 2022 would need to be compliant with these regulations.

It is expected that the Consultation response will be published by the end of this year. The full consultation document can be found here:

https://www.gov.uk/government/consultations/mandatory-climate-related-financial-disclosures-by-publicly-quoted-companies-large-private-companies-and-llps


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